Pedestrians walk near the Bombay Stock Exchange (BSE), center, in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Bank Of Baroda, Cadila Healthcare, Sun Pharma, Tech Mahindra

Summary
  • Neuland Labs to allot 16.75 lakh equity shares at Rs 750 each through QIP
  • Camlin Fine Sciences to raise Rs 250 crore via issue of securities
  • Nifty results today: Sun Pharma, Tech Mahindra

Asian stocks opened lower after the cancellation of the U.S.-North Korea summit, which sparked a move to safe-haven assets.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade at 10,512 as of 7:30 a.m.

Stocks To Watch In Friday’s Trade

  • Avenue Supermarts says founder RK Damani has completed the sale of 62.4 lakh shares (1 percent stake) between May 21- 24.
  • Neuland Labs to allot 16.75 lakh equity shares at Rs 750 each through QIP.
  • Gayatri Projects receives letter of award for highway project in Telangana worth Rs 425 crore.
  • Camlin Fine Sciences to raise Rs 250 crore via issue of securities.
  • Kaveri Seeds to buy back 29.63 lakh shares at Rs 675 each.

F&O Setup

  • Nifty May futures closed trading at 10,505 discount of 8.6 points
  • May series: Nifty open interest down 2 percent; Bank Nifty open interest down 1 percent
  • India VIX ended at 13.1, down 7 percent
  • Max open interest for May series at 10,800 (open interest at 49.4 lakh, down 11 percent)
  • Max open interest for May series at 10,500 (open interest at 55.2 lakh, up 20 percent)

F&O Ban

  • In ban: BEML, DHFL, Jet Airways, Jain Irrigation, Reliance Communications
  • New in ban: Jet Airways, Jain Irrigation
  • Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions

Active Stock Futures

Bulk Deals

Avenue Supermarts

  • RK Damani sold 47.30 lakh shares or 0.8 percent equity at Rs 1,360.2 each.
  • Axis Capital sole banker to deal.

Shaily Engineering

  • HDFC MF bought 1.98 lakh shares or 2.4 percent equity at Rs 1,292 each.
  • DSP Blackrock Emerging Stars Fund sold 2 lakh shares or 2.4 percent equity at Rs 1292 each.

Fuel Price Update

State-run oil marketers hiked petrol and diesel prices for the twelfth day in a row.

The price of petrol was hiked by 36 paise today to Rs 85.65 a litre in Mumbai and diesel was raised by 24 paise to Rs 73.20 a litre, according to data released by Indian Oil Corporation Ltd.

Nifty Earnings To Watch

  • Sun Pharma
  • Tech Mahindra

Other Earnings To Watch

  • Amber Enterprises India
  • Bank of Baroda
  • BEML
  • Cadila Healthcare
  • Central Bank of India
  • Engineers India
  • General Insurance Corporation of India
  • India Cements
  • Indian Hotels
  • Jagran Prakashan
  • Karur Vysya Bank
  • Lakshmi Vilas Bank
  • Lemon Tree Hotels
  • Max Financial Services
  • NBCC
  • NLC India
  • Page Industries
  • PC Jeweller
  • PFC
  • Va Tech Wabag
  • Waterbase

Earnings Reactions To Watch

United Spirits (Q4, YoY)

  • Revenue up 7 percent at Rs 2,173 crore.
  • Net profit at Rs 211 crore versus net loss of Rs 104 crore.
  • One-time loss of Rs 291 crore in the base quarter.
  • Ebitda up 5 percent at Rs 274 crore.
  • Margin at 12.6 percent versus 12.9 percent.

MOIL (Q4, YoY)

  • Revenue up 57 percent at Rs 398 crore.
  • Net profit up 10 percent at Rs 128 crore.
  • Ebitda up 42 percent at Rs 173 crore.
  • Margin at 43.5 percent versus 48.2 percent.

Camlin Fine Sciences (Q4, YoY)

  • Revenue up 54 percent at Rs 232 crore.
  • Net loss of Rs 4 crore versus net loss of Rs 7 crore.
  • Ebitda at Rs 11 crore versus Ebitda loss of Rs 7 crore.
  • Margin at 4.7 percent versus -4.6 percent.

South India Paper Mills (Q4, YoY)

  • Revenue up 30 percent at Rs 56 crore.
  • Net profit up 50 percent at Rs 3 crore.
  • Ebitda up 27 percent at Rs 7 crore.
  • Margin at 12.5 percent versus 12.8 percent.

Sudarshan Chemicals (Q4, YoY)

  • Revenue up 31 percent at Rs 384 crore.
  • Net profit up 32 percent at Rs 22.5 crore.
  • Ebitda at Rs 56 crore versus Rs 33 crore.
  • Margin at 14.6 percent versus 11.3 percent.

Kaveri Seed Company (Q4, YoY)

  • Revenue up 5 percent at Rs 42 crore.
  • Net loss of Rs 18 crore versus net loss of Rs 87 crore.
  • Ebitda loss at Rs 13 crore versus a loss of Rs 27 crore.

Pidilite Industries (Q4, YoY)

  • Revenue up 15 percent at Rs 1,485 crore.
  • Net profit at Rs 244 crore versus Rs 157 crore.
  • Ebitda up 6 percent at Rs 274 crore versus Rs 258 crore.
  • Margin at 18.5 percent versus 19.9 percent.

Sequent Scientific (Q4, YoY)

  • Revenue up 18 percent at Rs 233 crore.
  • Net profit at Rs 399.5 crore versus Rs 7 crore.
  • One-time gain on sale of assets worth Rs 393 crore in current quarter.
  • Ebitda up 36 percent at Rs 30.5 crore.
  • Margin at 13.1 percent versus 11.4 percent.

Glaxosmithkline Pharmaceuticals (Q4, YoY)

  • Revenue down 1 percent at Rs 749 crore.
  • Net profit down 6 percent at Rs 106 crore.
  • Ebitda up 13 percent at Rs 155 crore.
  • Margin at 20.7 percent versus 18.0 percent.

Heritage Foods (Q4, YoY)

  • Revenue up 14 percent at Rs 562 crore.
  • Net profit down 91 percent at Rs 21 crore.
  • Ebitda loss at Rs 4 crore versus Rs 10 crore.

LT Foods (Q4, YoY)

  • Revenue up 15.5 percent at Rs 1,071 crore.
  • Net profit flat at Rs 32 crore.
  • Ebitda up 4 percent at Rs 96.5 crore.
  • Margin at 9 percent versus 10 percent.

Cummins India (Q4, YoY)

  • Revenue up 4 percent at Rs 1,233 crore.
  • Net profit up 2 percent at Rs 161 crore.
  • Ebitda flat at Rs 172 crore.
  • Margin at 13.9 percent versus 14.4 percent.

Triveni Engineering (Q4, YoY)

  • Revenue down 18 percent at Rs 735 crore.
  • Net loss of Rs 102 crore versus net profit of Rs 60.5 crore.
  • Ebitda loss at Rs 114 crore versus Rs 169.5 crore.

Brokerage Radar

CLSA On GAIL

  • Upgraded to ‘Buy’ from ‘Sell’, hiked price target to Rs 405 from Rs 337.
  • Bunched-up expenses and lower gas trading profit led to 20 percent PAT miss.
  • Recent crude price spike not only eliminates U.S. LNG risk but also boosts its core earnings per share.
  • China demand and crude spike has turned U.S. LNG from a headwind to a tailwind.
  • Several imminent triggers and stock ignoring crude spike gains.

Morgan Stanley On GAIL

  • Maintained ‘Overweight’ with a price target of Rs 510.
  • High imported gas costs were key to the Q4 miss; operationally good quarter.
  • GAIL's contracted gas sourcing should shield it from seasonal volatility.
  • Oil to gas differentials widen and concerns about contracted LNG diminish.

Morgan Stanley on United Spirits

  • Maintained ‘Equal Weight’ with a price target of Rs 3,250.
  • Strong volume growth will drive 2018-19 consensus estimates.
  • Strong volume growth in the 'prestige and above' segment.
  • Risk-reward for the next 12 months appears less favorable at current valuations.

CLSA On NCC

  • Maintained ‘Buy’ with a price target Rs 160.
  • Backlog growth robust and reports all–time high Ebitda margin.
  • Record inflow driven by AP Capital infrastructure and Delhi government building contracts.
  • Buy on improving state capex growth visibility and asset-light model.

Kotak on City Union Bank

  • Maintained ‘Add’; hiked price target to Rs 190 from Rs 180.
  • Healthy operating profit growth with stable performance on most metrics.
  • RoE improvement still looks unlikely; FY2015-18 has been at 15 percent.
  • Consistent performance maintained; Valuing bank at 2.4 times book and 16 times March 2020E EPS.

Deutsche Bank on Jain Irrigation

  • Maintained ‘Sell’ with a price target of Rs 82.
  • Higher polymer costs likely to pressure micro irrigation project margins.
  • Net debt/EBITDA remained elevated at 3.8 times (versus guidance of 3 times).
  • Margins at risk from higher oil price.
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